If Nominal GDP Grew by 5 Percent and Real GDP

question 74

Multiple Choice

If nominal GDP grew by 5 percent and real GDP grew by 3 percent, then the GDP deflator grew by approximately ______ percent.

• A) 2
• B) 3
• C) 5
• D) 8

Calculate activity rates and apply overhead costs to products using ABC.

Analyze the impact of different costing methods on product costs and financial reporting.

Identify and categorize activity cost pools and their respective cost drivers.

Compute unit costs under ABC and traditional costing systems.

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Definitions:

Accrued Revenue

Revenue that has been earned but not yet received in cash or recorded by the accounting system.

Adjusting

The process of making entries in the accounting records at the end of an accounting period to account for items that were not fully recorded.

Accruals

An accounting practice that documents income and expenditures at the time they happen, irrespective of the timing of the associated cash transactions.

Recorded

The act of documenting transactions, changes, or events in the relevant books or databases for future reference and analysis.